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WASHINGTON (UPDATED: 4/15/13, 4:25 P.M. ET)--Legislation that would improve the federal examination process for credit unions and other financial institutions has been introduced by Sens. Jerry Moran (R-Kan.) and Joe Manchin (D-W. Va.).

The exam fairness bill, backed by the Credit Union National Association, would:

Make available to financial institutions the information used to make decisions in their examination;

Codify certain examination policy guidance;

Establish an ombudsman at the Federal Financial Institution Examination Council to which financial institutions could raise concerns with respect to their examination; and

Establish an appeals process before an independent administrative law judge.

CUNA has called examination fairness legislation "a firm step in the right direction toward ensuring the federal financial institution regulatory agencies conduct fair exams which are consistent with the law and regulation and ensure safety and soundness."

A House version of similar legislation is expected to be released soon, perhaps as early as today.